Industrial Production For July

The Federal Reserve reported its Industrial Production Index inched upwards 0.9% in July 2011 to 94.2 from 93.3 in June, beating the estimate that the index would remain unchanged. July 2011 production is about 3.7% higher than July 2010. Note that an index score of 100 means production is equal to 2007's level, so 94.2 is 94.2% of 2007's production.

Manufacturing output rose 0.6% in July, as the index for motor vehicles and parts jumped 5.2%, and production elsewhere moved up 0.3%. The output of mines advanced 1.1% and the output of utilities increased 2.8%, as the extreme heat during the month boosted air conditioning usage.

The capacity utilization rate for total US industry climbed to 77.5%, up from 76.9% and beating estimates of 77%. July 2011 capacity was 2.2% above July 2010's 75.3%.

In total, the US recorded slow, if unspectacular, gains for July. The largest output gain was for automobile products, up 5.9% over June as supply chain problems from Japan's earthquake and tsunami were sorted out.